In God We Trust - Starbucks?

Hello MarketClub members everywhere. This morning I learned that Starbucks Corporation (NASDAQ:SBUX) has 1.2 billion dollars loaded onto Starbuck's cards and their mobile app - that is more capital than almost 5,000 US banks! The other good news for Starbucks is that they are playing the 'float' which means they are getting a return on your capital much like a bank, albeit small, as interest rates are so low right now. So next time you are in Starbucks ordering your favorite cup of coffee, do yourself a favor and pay cash. Why let Starbuck's make a buck on your hard earned money?

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Overseas: The German Bund yields sink to new lows and yields in both Britain and Germany fell to record lows ahead of Britain's referendum on the European Union membership later this month. All of which is not particularly positive for the US economy or today's market.

How The Markets Closed Last Friday: Every Friday I look back on the week and see where the markets closed the previous Friday. This look backwards gives me the opportunity to see whether a market is positive or negative for the week. One of the important market perceptions is to look at the comfort level of traders and investors on Friday and see if they are comfortable going into the weekend holding positions in various markets. With that said, here's how the major markets closed last Friday. Continue reading "In God We Trust - Starbucks?"

Who Is Going To Bet Against George Soros?

Hello MarketClub members everywhere. The big question today is, who is going to say George Soros is wrong? This is the same man who bet against the Bank of England in 1993 and made over a billion dollars! That is when a billion dollars used to be worth a whole lot more than it is now.

One expression I heard many years ago in the early part of my career is, "they don't ring a bell at the top of the market." It's one of the best expressions I have ever heard in the marketplace and it's true, nobody tells you exactly when it's the top of the market.

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Whether this is the top, or we are close to the top, it really is too early to say. However, there is a certain feeling in the air of uncertainty and that alone can cause stocks to go down. Continue reading "Who Is Going To Bet Against George Soros?"

Is The Stock Market Decoupling From Crude Oil?

Hello MarketClub members everywhere. This morning crude oil moved over $51 a barrel, its best level in nine months. In the last couple of years, there has been a strong correlation between the stock market and the price of crude oil. But, is that correlation about to decouple?

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In today's video, I will be analyzing crude oil (NYMEX:CL.N16.E) and providing you with potential profit targets. Now that the $50 level has been breached, you can look at $50 as perhaps the new floor for crude oil. Since the beginning of the year, I have seen a fairly consistent move to the upside that many economists missed, yet the Trade Triangles have flourished with their non-opinionated approach to the market. Continue reading "Is The Stock Market Decoupling From Crude Oil?"

The Story of Three A's - Apple, Amazon and Alphabet

Hello MarketClub members everywhere. Well, we are at the beginning of a new week on a rather unusual day when we have three sixes in the date, that's not going to happen again until the 26th or until we hit 2026. That occurrence aside, I want to take a look at all the markets and in particular, the three A's

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Let's begin by looking at Apple: Continue reading "The Story of Three A's - Apple, Amazon and Alphabet"

Did Warren Buffett Get It Wrong With Apple?

Hello MarketClub members everywhere. After years of avoiding tech stocks and missing the tech boom, legendary investor Warren Buffett purchased through Berkshire Hathaway 9.8 million shares of Apple on May 16th, worth roughly $1.07 billion, according to a filing for the first quarter with the Securities and Exchange Commission.

What's interesting here is hedge fund giant, David Tepper, exited his 1.2 million stake in Apple and in April, Carl Icahn said he no longer holds any shares in Apple.

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So who is right? David Tepper and Carl Icahn for selling their shares of Apple Inc. (NASDAQ:AAPL) Or Warren Buffett for buying the stock? Well, it all begins with your time perspective. In the case of David Tepper and Carl Icahn, they tend to be traders as opposed to Mr. Buffett, who tends to be a long-term investor. Now I can say this about Mr. Buffett; he is not a tech guy and he missed out on the big move in all of the tech stocks. So if you are a long-term investor, it may not be a bad move to buy Apple. If you're more of a trader, then you probably want to be out of the stock of the moment.

Here is my take on Apple. Continue reading "Did Warren Buffett Get It Wrong With Apple?"